Active
Specialty Label Manufacturing, Automatic Identification & Barcode Solutions
Customer Sector Diversification and Established Market Presence
NAICS: 561910 – Packaging and Labeling Services 424110 – Printing Merchant Wholesalers 323111 – Commercial Printers
C-Corp since 1990. One owner/founder is permanently retiring.
Today, there are more and more products moving through distribution channels as manufacturers produce more variations of products—different sizes, flavors, formulations, private-label versions and regional SKUs. Each requires unique labeling, making short-run and variable-data printing increasingly valuable.
Industry data is clear. Labels are one of the comparatively resilient segments of printing because they are tied to physical products rather than documents.
And because warehousing, manufacturing, healthcare and distribution increasingly depend upon barcodes, serialized labels, inventory tracking and identification technologies, the Company closes these gaps. For 36 years they have been providing printer hardware and recurring labels/ribbons consumed by those printers.
Their specialty is the manufacturer of blank and custom printed labels and tags, providing label printing systems, and distributing oil change reminder systems & supplies to 5,000 businesses nationwide.
These characteristics—recurring demand, outsourcing trends, fragmented competition and exposure to growing logistics and consumer-product activity—support a favorable longer-term outlook for an established packaging and labeling service company.
They serve multiple markets in food, beverage, consumer goods, cosmetics, medical and industrial applications, including moisture-resistant, chemical-resistant, freezer-grade, foil, UV-coated and specialized labels.
Industrial barcode printers are often mission-critical equipment. A failed printer can interrupt shipping or production. The Company therefore sells annual service agreements offering on- or off-site support, preventive maintenance and guaranteed response times.
The business has four segments for generating revenue:
- Specialized niche with strong margins of proprietary oil change label manufacturing (most growth potential)
- Reseller of manufactured blank labels and tags to industry brokers (such as:
- Direct sales of manufactured blank and customized labels and tags to end users (such as:
- Repair services to equipment offering onsite and offsite support
Listed By: Margot Murphy
Background information
Reference:
80925-MM
Year established:
1990
Reason selling:
Permanent Retirement
Finance
Sales:
$2,146,893
Profits:
$139,714
Profit type:
Discretionary Earnings
Operations
Operating hours:
M - F 8:30 am to 5 pm PST
Employees:
Six hourly paid W-2 employees. Two salary paid W-2 employees. One owner and spouse salary paid W-2. See attachment in first level data room.
Equipment:
Equipment List included in a sale (all owned outright). Cost new appx. $1MM. Resale value of current equipment $250k to $300k. 1. 2200 Press, 8 color (20 years old, paid $400k 2. 4120 Press, 4 color 3. Two each Die Cutting machines 4. ABG Rewinder 5. Forklift
Inventory:
$100,000 useable inventory included in sale
Premises
Facility:
The 8,500 SF light industrial building is 100% occupied by the business being sold.
Square footage:
8,500
Rent and lease terms:
Business seller is owner of the 8,500 SF light industrial building the business occupies and operates from. Owner will lease back existing space for around $13,000/MO NNN.
Location:
Located since 1990 in central Orange County, California.
Price and terms
Price:
$685,950
Down payment:
$137,190
Training:
Seller will provide new owner training, post sale, for four weeks, up to 20 hours/week.